A brief stroll through the aisles of any major retailer will confirm the truism that, in most developed economies, the decision to purchase even the most common of consumer staples can often involve choosing from a dizzying array of competing products, many of which share similar characteristics. In a world where consumers can choose among 20 or 30 or more different types of breakfast cereals or toothpastes or shampoos etc., brand differentiation is often a key determinant in the success of a product (or a service). Trade marks are a critical component of the brand differentiation process. They are also enormously valuable assets of most successful businesses.

Because trade marks can be such valuable business assets, great care should be taken in selecting them. Another reason why great care should be taken in selecting a trade mark is that, while registration of a trade mark in Canada confers on the trade mark owner the exclusive right to use the registered trade mark throughout Canada, the trade mark owner is ultimately responsible – both legally and financially – for enforcing that monopoly right.

Ideal trade marks therefore tend to exhibit two qualities: first, they’re highly successful in serving their primary business purpose of effectively differentiating the goods or services of their owners from those of their competitors; and, second, there’s a high probability that their value as intellectual property can be legally protected. Both of the above qualities are possessed by trade marks that have a high degree of inherent distinctiveness.